Panama revises the tax on gambling winnings
Panama’s Gambling Control Commission plans to repeal a 5.5% tax on gambling winnings, aiming to boost tourism and competitiveness.Summary
Panama’s Gambling Control Commission (JCJ) has announced plans to repeal the 5.5% tax on gambling winnings, a levy introduced in 2015 that applied to both winnings and stake amounts. The JCJ views the tax as controversial and detrimental to the tourism sector, believing it created a barrier for players and reduced competitiveness compared to neighboring destinations. The repeal aims to attract more foreign players and give land-based casinos an advantage over the growing online iGaming segment. Alongside the repeal, the JCJ intends to implement an electronic audit system and expand its audit staff to improve tax administration and reduce unrecorded transactions. The move follows criticism from the gambling industry, which argued the tax negatively impacted legal venues and drove demand to the shadow market, with collection figures showing a decline in revenue in 2019. The JCJ also engaged in discussions with Mexican regulators to share best practices in gambling regulation and taxation.
(Source：Newsroom Panama)